office contractors -1099

Started by MaureenM4 • 3 replies • 1193 views

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MaureenM4 (Washington)
Posts: 20

Posted:

Do any of you require your 1099s to carry insurance and bonding for PM and book keeping? We have residents paid for these jobs and I am worried about liability. Some members of the board told me then did not feel that these resident 1099's would "never sue us and they are nice people".

IMO they can be the nicest person in the world but if the PM falls on the pool deck and is hurt without insurance we (the HOA) pays...

AnnaD2 (Florida)
Posts: 960

Posted:

Maureen, our maintenance employee is 1099'd at the end of the year. We carry a seperate insurance policy that covers anyone working on the property.

You're correct to be concerned. Those board members who think that "nice people" won't sue are living in "la-la land".

RogerB (Colorado)
Posts: 5,067

Posted:

Maureen, your first priority should be to make sure your HOA carries adequate insurance - D&O, liability, theft, workers comp, ect. Then the Board should determine what types and amounts of insurance is required for each independant contractor. We suggest hiring everyone, including residents, as independent contractors. The HOA's insurance should also cover situations such as when the contractor lets their insurance lapse or does not cover sub contractors they employ.

DanielH1 (California)
Posts: 482

Posted:

Our P/M requires insurance and bonding. I'm not convinced that it is required by law, maybe just more of a good idea.

Owners are usually covered by the HOA's insurance, at least if they are doing the work for free.

If you are paying the owners, that might be a gray area. I'd look at the HOA's insurance and see if they don't cover.

Personally, I think that P/Ms make a bigger deal out of bonding and insurance and often don't even understand what it is but demand it anyway.

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